July 22, 2010

Ask a professional real estate agent why one house costs more than another, and she’ll say “location, location, location.” Ask why one house cost more than another despite being smaller and having fewer amenities, and she’ll say, “location, location, location.”

Then again, ask her what she had for dinner last night, and she’ll say, “location, location, location.”

Is location really all there is to pricing Real Estate? Is it the perceived market pulse, or expectations, or whether a neighbor down the street has an RV in the front yard? Does the condition of the house matter? Or is it just what the realtard had for dinner last night?

Several homes for sale on the same street is one way to stress test this real estate cliché. So let’s begin with this “cozy charmer,” as a professional might call it. The rest of us would call it a charming ninety year old garden shed. But when the shed is in a prime zip code, it’s priced right under a million.

English cottage style with wonderful decor and charm. Two bedrooms with walk-in closets; large kitchen, separate dining room, inside laundry. Lovely patios under new trellis. Separate out building attractive exterior could become darling room of some practical or fun purpose. Fantastic location!

See! She said location! I guess we should be grateful she only said it once. She also said “charm,” “lovely,” and “darling.” And the “separate out building attractive exterior” isn’t shown in the photos, even though it “could become darling room of some practical or fun purpose.” Practical or fun? Why not both? Then the on-site meth lab/hookah bar is a go!

Now, speaking of the “fantastic location,” notice anything about the map?

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Well yes, it appears the property has been subdivided into The House and The Street Access. That’s curious, but remember today’s title? Hint: The yellow “do not cross – crime scene” tape runs across Middlefield Road. So, is this house on the “right” or the “wrong” side of the boundary? And would the price be higher or lower if the chicken crossed the Road?

By the way, the neighbor really does have an RV parked on the lawn.

Now that is one classy neighborhood. Can’t wait to see how prices (as well as neighbors’ vehicles) fare on The Other Side. Stay tuned!

26 Responses to “Location, Location, Location”

madhaus- Thanks for this fine writeup. I knew this was your writing as soon as I read, “So let’s begin with this “cozy charmer,” as a professional might call it. The rest of us would call it a charming ninety year old garden shed.”

nomadic- I know it’s not sold yet, and unlike Owner, I’m not going to make claims about the sale price before it’s sold, but $365k to $1M in 12 years? If this is realized, I’d say it was a great investment. Today, by the way, is the 90th day that Owner’s fine property has been on Redfin, and still no price reduction, for Pete’s sake. That’s $2,700 in space rent, at $30 a day, and while I know that’s not a lot of money, that $8,000 income tax credit is gone, so we’re talking about $10k evaporation on a less than $100k sale. Before you get too testy on me about the $2,700 in added expense, remember that sellers seek to sell sooner rather than later, given equal selling prices.

Wondering what’s going on with Lincoln’s Pending, then Active, then Pending again, no…wait…Active status? According to a realtor friend apparently the house is literally falling into the earth. It’s still standing on it’s original (mostly disintegrated) foundation. The best part is that the seller didn’t disclose that potential buyers. Let’s hope they have learned their lesson by now. Only an idiot or developer would buy that dump. BTW – that’s what happened with the “mailman’s” house on the wrong side of Lincoln. It’s gone (along with the truck) and a new build is in process.

Just to clarify a few mistatements in the comments. ABC Elevator is not located here. Does not own nor use a trailer. Does not own nor use an RV. Neither do its owners.We have not been informed of any of our vehicles blocking anyones driveways. If I have missed anything that you wish to bring up please send a note to our PO Box 1530, Palo Alto, CA 94302 adrress. Thanks
Al

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